Solar PV hosting capacity: grid-based vs. market-based scenarios

Assessing the capability of a distribution grid to accommodate new solar PV installations, namely its hosting capacity (HC), has been a prevalent research topic. Although providing a technical limit to how much additional solar PV can be integrated into a distribution grid without trespassing operational limits, commonly used HC analysis (HCA) does not consider consumer preferences or the economic feasibility of installations. Using a market-based optimal power flow (MBOPF) and HCA, we compare the economic and technical limits of solar PV capacity integration in low voltage distribution systems (LVDS). Findings illustrate that (1) the PV HC computed using grid limits only does not give a complete picture of solar PV capacity integration potential, (2) linear, deterministic power flow is not a foolproof method for assessing the network-secure amount of PV, and (3) the number of technically feasible installation sites supersedes the economically feasible ones.